AeroEdge (7409) Q2 2025 earnings summary

Executive summary

• Achieved record-high revenue and operating profit for Q2, with revenue for the six months ended December 31, 2024, increasing 16.4% year-over-year to ¥1,694.7 million, driven by strong demand for titanium-aluminum blades for A320neo and LEAP engines.

• Operating profit rose 50.4% year-over-year to ¥277.4 million, with net profit up 33.7% to ¥201.6 million.

• Strong sales of titanium-aluminum blades for A320neo offset weaker 737MAX demand; overall sales exceeded initial expectations.

• Extended SAFRAN supply contract through 2034, increasing market share from 35% to 40%, and signed new long-term contracts with major global aerospace manufacturers.

• Strengthened R&D for new materials and secured future growth through updated contracts and new business wins.

Financial highlights

• Q2 revenue: ¥1,694.7 million, up 16.4% year-over-year; operating profit: ¥277.4 million, up 50.4%; net profit: ¥201.6 million, up 33.7%; EBITDA: ¥465 million, up 19.1%.

• Ordinary profit: ¥238.5 million, up 38.0% year-over-year; EPS: ¥52.62 (up from ¥39.74 year-over-year).

• Gross margin improved to 46.3% in Q2; operating margin at 16.4%.

• Q2 progress rates: revenue 47.7%, operating profit 55.5% of full-year guidance.

Outlook and guidance

• Full-year revenue forecast revised to ¥3,550 million (up 6.0% year-over-year) due to Boeing 737MAX strike impact; profit guidance maintained.

• Operating profit forecast at ¥500 million (up 29.1%), ordinary profit at ¥450 million (up 35.6%), and net profit at ¥435 million (up 48.4%).

• EPS for the full year projected at ¥117.58.

• Expecting 10–15% growth in titanium-aluminum blade sales in FY26 and 40–50% in FY27.

• Ongoing investments in new mass production projects, with some delays in engine A ramp-up.